Southern Cotton expands operations

Martin Kadzere

SOUTHERN Cotton, one of Zimbabwe’s largest cotton financiers and lint producers, is undergoing massive expansion following the acquisition of new ginneries in Glendale and Gweru.

On Tuesday, the firm’s managing director, Mr Caos Nzenze, said the expansion drive was ongoing.

“The company has so far managed to acquire new ginneries in Glendale and Gweru, while efforts are underway to refurbish the Shamva ginnery,” he said.

Combined, the three ginneries boast a significant capacity to process up to 100 000 tonnes of raw cotton, positioning the company as a major player in the cotton sector in the country.

Mr Nzenze said the company was in the process of raising funding for the upgrading and expansion of the Shamva ginning facility, which requires about US$2,5 million.

A cotton ginnery’s primary purpose is to separate cotton lint from the seeds, preparing the fibre for processing into textiles. The seeds are then used in cooking oil production, while their by-product, cottonseed meal, serves as a key component in livestock feed production.

Mr Nzenze said the company was projecting a significant boost in its lint production, aiming for a minimum of 4 000 tonnes this year, driven by robust farmer programmes and internal initiatives.

He highlighted the company’s substantial ginning capacity, indicating that current production levels are the primary limitation to fully utilising their plants.

Mr Nzenze confirmed positive operational conditions, saying that since ginning commenced last week at their Gweru plant, there had been “no power outages,” allowing for “continuous ginning without any challenges.”

Southern Cotton operations and production director Mr Simanos Zhou said the company was strategically expanding its cotton production, directly planting 1 000 hectares of its own crop last season.

Mr Zhou outlined the company’s approach, saying, “We are trying to look back… where cotton was being produced commercially. And we have taken that route already.”

In addition to its direct farming operations, the company is actively pursuing an outgrower scheme, where they plan to finance on average, one hectare per household.

Mr Zhou emphasised that this dual strategy will “give us enough cotton to keep rolling,” ensuring a consistent supply for their ginneries.

“We are increasing hectarage under cotton in all major cotton producing areas by embarking on our own cotton production and we are also opening new areas, particularly in new resettlement areas, but this means the company must set up ginneries in those areas. We have huge ideas for this country’s cotton sector, and there are fantastic prospects,” said Mr Zhou.

He emphasised the “huge economic benefit to the Gweru community” derived from their operations.

Southern Cotton’s lint primarily targets export markets, with Europe and Asia being key destinations.

The company also supplies the southern African region, including South Africa and Mozambique.

Mr Nzenze said that while being export-oriented, Southern Cotton adhered to national laws that mandate prioritising the local market for beneficiation by selling up to 30 percent of their production domestically.

Recognised as one of the most notable foreign currency generators, Southern Cotton plays a crucial role in supporting the Government’s thrust on value addition.

Currently, the company employs approximately 800 people throughout its operations across the country, underscoring the commitment to job creation and community development. “Southern Cotton will continue to ensure it contributes towards the development of Government programmes.

“Cotton is the white gold with a capacity to generate millions of dollars in foreign currency,” said Mr Nzenze.

To date, Southern Cotton has generated millions in foreign earnings for the country through lint exports, which has seen the company earning the most coveted Zimbabwe National Chamber of Commerce award, Most Improved Exporter of the Year in 2021, and the Best Exporter in the agriculture sector category in 2023.

Zimbabwe is among the major cotton producers in Africa and is globally known for its top lint quality.

At least 70 percent of Zimbabwe’s lint is exported, while 30 percent is consumed locally due to low spinning capacity.

Cotton is largely grown by smallholder farmers in Zimbabwe, with an average of one hectare for every farmer, making it one of the major sources of livelihoods for the countryside citizens.

Production is mainly done, on average, in drier parts of the country with considerably moderate to high temperatures and rainfall amounts averaging 500 mm per annum.

Major cotton-producing areas include Gokwe, Sanyati, Kadoma, Muzarabani, Mt Darwin, Chipinge, Masvingo, Matabeleland provinces, and several other areas suitable for cotton production.

Mr Nzenze said as a subsidiary of Valley Seeds, a major seed house in Zimbabwe, Southern Cotton was dedicated to promoting sustainable agricultural practices and supporting local farmers.